Register report about public funds going to private schools did not tell the whole story

In the recent Des Moines Register article, “How much public money goes to support private schools in Iowa?,” it was reported that nearly $500 million in public funds have gone to support non-public schools since 2008. The article points to several programs that add up to $52.6 million for the 2017-18 school year. The article contained some points that should be clarified.

The Register pointed to Iowa’s Tuition and Textbook Tax Credit (TTC) as the “largest single source of state support of private schools,” but the $15.5 million tax credit does not only go to private school families. According to the 2017 Iowa Department of Revenue analysis of the tax credit program, any family incurring educational expenses from an Iowa educational K-12 institution – public or private – is eligible for the TTC. Expenses vary from tuition, to musical instruments, to sports fees, and even cleats.

Furthermore, the Department of Revenue report says, “8.2 percent of all claimants claimed the maximum credit of $250 for each qualifying dependent. Because these taxpayers are claiming $1,000 in eligible expenses for each dependent, it is likely that they are paying tuition to a private school.” During the 2017-18 school year, approximately 34,000 students attended non-public institutions. Even if all non-public students were claimed under the TTC, that is still not even 30 percent of the total 118,348 households that claimed the TTC. Therefore, non-public school families account for, at most, $4.5 million out of the total $15.5 million expense to the state, and the vast majority of these tax credits are going to public school families.

Another area the Register article points to is the Iowa School Tuition Organization tax credit program (STO). This program allows for donations to be turned into tuition grants that are awarded to nearly 11,000 students each year. A common misconception is that the STO program is just a subsidy for rich, private school families, but the reality is that the majority of STO tuition grants are awarded to families with incomes between one and two times the poverty line.

In addition to supporting Iowa’s families, the STO tax credit program saves the state more than $12.6 million annually, according to an Iowa Department of Revenue analysis. The savings afforded by the STO program to the state more than cover the cost of the tuition and textbook credits claimed by non-public school families, as well as the costs of the state services, public-school classes, and textbook costs mentioned in the Register’s article.

That being said, the fact is that the funds mentioned in the Register article don’t go to private schools; they go to children and families. These are families who live and work in our communities. They also pay income and property taxes to support their local public schools and our state.

Non-public schools are partners in our communities’ efforts to provide the best education options. We need to stop looking at education as a “public vs. private” issue and focus on the quality of the educational services being provided for each Iowa child, no matter where or how they are educated.

Non-public schools have saved Iowa taxpayers billions of dollars over the years by saving them the cost of a full public-school education for each child they serve. This actually results in more state funds being available for public schools.

Between federal, state and local sources, more than $6 billion a year is spent on the backbone of our education system in Iowa: public K-12 schools. The fact that lawmakers have also decided to help some parents be able to choose the non-public school that best fits their child’s unique needs should be applauded, not criticized.

Trish Wilger is the executive director of the Iowa Alliance for Choice in Education.

EDITOR’S NOTE: The writer is correct that Iowa’s Tuition and Textbook Tax Credit goes to families of public school students as well as private school students. The online story has been updated and a correction added to reflect that fact.